Health and Education: Challenges and Financial Constraints

Even if both the health and the educational sector are under the state supervision in basically all countries, there are wide differences in the mix of their public/private provision and financing across them. The debate on the proper mix between the private and the public involvement has also been re-enlightened by the recent financial crisis which has stressed many countries’ public finances. The aim of this paper is twofold. On the one hand, it aims at presenting the incentive mechanisms both for the public and the private sector behind different types of mix between private and public involvement according to the industrial organization design of the health and the educational sector. On the other hand, the paper aims at presenting some recent case studies on Public Private Partnerships in both the health and the educational sector in countries such as the U.K., the U.S.A., and the Netehrlands.